Yen gets boost from souring risk sentiment

The yen was supported against the dollar on Tuesday as soured risk sentiment favoured the safe haven Japanese currency, while the Canadian dollar struggled near an 11-year low against the greenback as crude oil prices resumed their slide.

The dollar, which has lost some steam against its Japanese counterpart after the Federal Reserve hiked interest rates this month, dipped 0.1 percent to 120.26 yen.

It edged closer to a two-month low of 120.05 plumbed last week as weaker oil sapped investor risk appetite. The dollar was on track to eke out a 0.5 percent gain against the yen this year.

Prices of both Brent and U.S. crude remained under pressure on Tuesday after dropping more than 3 percent overnight, reversing a brief rebound as concerns over oversupply returned. Brent slipped back towards an 11-year low.

The yen was expected to retain its support into the new year if oil prices continued declining.

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